Rent extraction and prosocial behavior

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2019
Volume: 166
Issue: C
Pages: 709-723

Authors (5)

Cagala, Tobias (Deutsche Bundesbank) Glogowsky, Ulrich (Johannes-Kepler-Universität Li...) Grimm, Veronika (not in RePEc) Rincke, Johannes (not in RePEc) Tuset-Cueva, Amanda (not in RePEc)

Score contribution per author:

0.402 = (α=2.01 / 5 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We present controlled experimental evidence on how rent extraction by an administrator affects giving to non-profit associations. Holding the price of giving constant, we compare contributions between two conditions: a rent extraction condition, in which an administrator can expropriate a part of the contributions and a control condition without rent extraction. We find that rent extraction strongly reduces average contributions. Studying the channels through which this effect operates, we demonstrate that rent extraction has situational spillovers, suggesting that it undermines the contributors’ general preference for giving. In contrast, we do not find evidence for negative reciprocity towards the administrator.

Technical Details

RePEc Handle
repec:eee:jeborg:v:166:y:2019:i:c:p:709-723
Journal Field
Theory
Author Count
5
Added to Database
2026-01-25